Chapter 22: Long-Run Economic Growth: Sources and Policies Flashcards Preview

ECON W1105 Principles of Economics > Chapter 22: Long-Run Economic Growth: Sources and Policies > Flashcards

Flashcards in Chapter 22: Long-Run Economic Growth: Sources and Policies Deck (14)
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1
Q

Industrial Revolution

A

the application of mechanical power to the production of goods, beginning in England around 1750

2
Q

economic growth model

A

a model that explains growth rates in real GDP per capita over the long run

3
Q

labor productivity

A

the quantity of goods and services that can be produced by one worker or by one hour of work

4
Q

technological change

A

a change in the quantity of output a firm can produce using a given quantity of inputs

5
Q

human capital

A

the accumulated knowledge and skills that workers acquire from education and training or from their life experiences

6
Q

per-worker production function

A

the relationship between real GDP per hour worked and capital per hour worked, holding the level of technology constant

7
Q

new growth theory

A

a model of long-run economic growth that emphasizes that technological change is influenced by economic incentives and so is determined by the working of the market system

8
Q

patent

A

the exclusive right to produce a product for a period of 20 years from the date the patent is applied for

9
Q

catch-up

A

the prediction that the level of GDP per capita (or income per capita) in poor countries will grow faster than in rich countries

10
Q

property rights

A

the rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it

11
Q

rule of law

A

the ability of a government to enforce the laws of the country, particularly with respect to protecting private property and enforcing contracts

12
Q

foreign direct investment (FDI)

A

the purchase or building by a corporation of a facility in a foreign country

13
Q

foreign portfolio investment

A

the purchase by an individual or a firm of stocks or bonds issued in another country

14
Q

globalization

A

the process of countries becoming more open to foreign trade and investment